The 7am Cut
BuyAssociation curates a weekly news letter of the top property news headlines – to receive your weekly round up of property news, register today.
In the news this week: mortgage approvals in the UK have reached their highest level in 17 months; rental costs surge across the UK; and tenant retention increases…
UK mortgage approvals hit 17-month high, says Bank of England
“UK mortgage approvals beat expectations in February to hit their highest in 17 months, according to official data that reflects the fall in borrowing costs since the middle of last year.
Net mortgage approvals for house purchases rose to 60,400 in February from 56,100 in January, the Bank of England said on Tuesday. The figure exceeded the 56,500 forecast by economists in a Reuters poll and was the highest since September 2022″…
– Valentina Romei, Financial Times
House prices continue upward trend
“Property prices have grown by 0.3% annually, with house prices up 2% on the previous quarter, reveals Halifax’s latest house price index. Kim Kinnaird, director at Halifax Mortgages, said: “The broader picture is that house prices are up year-on-year, reflecting the opposing forces of an easing cost of living squeeze — now that pay growth is outpacing general inflation — and relatively high interest rates.
“Looking ahead, that trend is likely to continue. Underlying demand is positive, as greater numbers of people buy homes, demonstrated by recent rises in mortgage approvals across the industry and underpinned by a strong labour market”…
– Jodie Bradley, Bridging and Commercial
Rent rises across the Greater Manchester boroughs
“The cost of renting is continuing to soar across the UK – and Greater Manchester is no exception. Rents have now risen by 8.8% across the country, with prices up by as much as 20% in some areas.
Greater Manchester has seen some of the biggest rent rises in the UK, with three of its boroughs having the largest increases in the last year. Rent prices in Oldham, Rochdale and Salford are soaring, having gone up by more than 12 percent since February 2023″…
– David Dubas-Fisher-MEN & Phoebe Jobling, Manchester Evening News
Good news for landlords as more tenants stay put for longer
“Long-term tenants carry a number of benefits to landlords from an investment perspective, and new research indicates renters could be staying in their rental homes for longer.
Tenant demand remains extremely high, says the report, with 89 new prospective tenants registered per member branch in February – a similar level to February 2023. However, rental stock levels have also fallen once more, with less than nine rental homes available on average per member branch”…
– Eleanor Harvey, BuyAssociation
Consumer sentiment is improving, UK’s largest building society says
“The average cost of a home is now £261,142. But overall, affordability is improving and the property market could improve further if interest rates come down. Nationwide’s chief economist Robert Gardner said it showed “consumer sentiment is improving” as cost of living pressures ease and inflation comes down.
Also released on Tuesday was February data showing financial institutions approved the highest number of mortgages since September 2022″…
– Daniel Binns and Sarah Taaffe-Maguire, Sky News
UK new-build market is improving as construction costs stabilise
“There are plenty of signs that the UK construction space is in line for a more healthy year ahead.
This is largely down to an improving economic backdrop, with Capital Economics predicting that the Bank of England will lower its base rate – currently at 5.25% – to around 3% in 2025. The first cut is widely anticipated to come in June, with more to follow as the year progresses”…
– Eleanor Harvey, BuyAssociation
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